Are failing windows and potential water damage a deal breaker?

[Samantha Kiser]

My husband and I are in the process of buying our first home, a duplex that we are planning on house hacking. We are nearing our deadline for our inspection contingency and are feeling uneasy about potential rehab costs. The major issue is that the some windows are moldy and some have rotted frames. The seller has agreed to give a credit of $7000 and price reduction of $5000 for window repairs after closing, this would cover the costs of replacing the windows that are in the worst condition. The seller will not push back the closing date in order to do the repairs before closing. Our concern is that fixing the windows could open a can of worms if there was possible water damage to the structure due to the poor condition of the windows. Is this a valid concern?

We are considering walking away but are afraid with our budget we will not find a home that doesn’t have similar issues and risks. In our market many buyers are skipping inspections to get an accepted offer.

Thank you in advance for your advice!